Business Overview. Fiscal 2017 Financial Results Briefing. May 10, Tadashi Ishizuka Representative Director, President and COO

Transcription

1 Business Overview Fiscal 2017 Financial Results Briefing May 10, 2018 Tadashi Ishizuka Representative Director, President and COO Contents 1. Project Orders for FY Target for FY2018 Orders 3. Policy for Orders and Target Projects 4. Present Status of Projects 5. LNG Canada 6. U.S. Market Policy 7. Expansion of EPC Domain 2

2 1. Project Orders for FY2017 Value of Consolidated Orders Received: 547 Billion Yen Overseas 398 Billion Yen 149 Billion Yen Mozambique Algeria FLNG Crude Oil Gathering and Processing Facilities LNG* U.S. *Orders to be recorded in FY2019 Indonesia Gas Processing Hiroshima CO 2 Separation Equipment Mie Solar Power Saitama Hospital Wakayama Pharmaceuticals Hyogo Chemicals (and others) 3 2. Target for FY2018 Orders Value of Consolidated Orders Targeted: 1 Trillion Yen Overseas 850 Billion Yen 150 Billion Yen Order targets reflect market expansion, including resumption of mega LNG projects 4

3 3. Policy for Orders and Target Projects Seeking projects with adequate margins North America LNG Chemicals Middle East Crude Oil Processing Gas Processing Oil Refining Chemicals, Pharmaceutical, Medical Solar Power Biomass Power Africa LNG (onshore, offshore) Southeast Asia Oil Refining, Chemicals LNG Receiving Terminals Solar Power 5 4. Present Status of Projects Stronger Management of Key Projects, As Before Revenue of Billion Yen Expected in FY2018 Yamal LNG (Russia) 2nd train completed in FY2018 Gas Booster (Algeria) Start of construction Revenue of Billion Yen Expected in FY2018 Oil Refining (Kuwait) FLNG (Mozambique) Module construction underway Ichthys LNG (Australia) 2nd train to be completed Oil Refining (Saudi Arabia) To be completed in FY % complete as of end of FY2017 To be completed in FY2018 Continued management of work at existing facilities (joint venture partner) Crude Oil Gathering, (Algeria) Peak design, procurement period Processing Crude Oil, Gas (Algeria) Processing FLNG (Malaysia) Topside construction underway Gas Processing (Bahrain) To be completed in FY2018 Mega Solar (Okayama) Peak construction period Peak construction period Complex construction Requires strict process management 6

4 5. LNG Canada Largest Order Ever Awarded Project Management Policies Capitalize on USGC Project experience Key point: construction management JGC to play active role Leverage module construction expertise from Yamal and Ichthys projects Production Capacity Two trains each producing more than 6.5 million tons annually (with option to expand to four trains) Construction site: British Colombia, Canada Kitimat area Client LNG Canada Shell (50%), CNPC (20%), KOGAS (15%) and Mitsubishi Corporation (15%) 7 6. U.S. Market Policy The U.S. Market Remains Promising Expand Business in U.S. Market Apply Lessons Learned from USGC Project Next Move Many plans in the field of LNG, gas chemicals, and chemicals projects Few skilled workers Low labor productivity High labor costs Construction management is the key Diversification of construction management resources (alliance with S&B) Forge closer ties with clients 8

5 7. Expansion of EPC Domain Promptly Taking Strategic Measures Offshore Infrastructure FLNG (floating liquefied natural gas facilities) Build on solid position as top contractor Collaborate with COOEC (leading Chinese module manufacturer) FPSO (floating production, storage, and offloading facilities for oil and gas) Participate in Ghana FPSO owning and chartering business Consider bidding in gas FPSO projects Power Generation Leverage domestic achievements in overseas markets (Solar projects in Vietnam) Consider domestic offshore wind power and other projects Others Seek overseas airport orders 9 Note on Future Outlook This presentation may contain forward-looking statements about JGC Corporation. You can identify these statements by the fact that they do not relate strictly to historic or current facts. These statements discuss future expectations, identify strategies, contain projections of results of operations or financial conditions or state other forward-looking information. These statements are based on currently available information and represent the beliefs of the management of JGC Corporation. These statements are subject to numerous risks and uncertainties that could cause JGC s actual results, performance, achievements or financial condition to differ materially from those described or implied in the forward-looking statements. JGC Corporation assumes no obligation to publicly update any forward-looking statements after the date of this presentation. These potential risks and uncertainties include, but are not limited to: competition within the financial services industries in Japan and overseas, our ability to adjust our business focus and to maintain profitable strategic alliances, volatile and sudden movements in the international securities markets, and foreign exchange and global economic situations affecting JGC Corporation. For questions concerning this material, please contact: JGC Corporation PR and IR Department Tel: Fax: ir@jgc.com